Sunday 4 December 2016

IFSC high-frequency trading firm sees big gains in profitability

Simon Rowe

Published 30/10/2016 | 02:30

Susquehanna Ireland had a net cash flow of $77m, up from $4.8m in 2014.
Susquehanna Ireland had a net cash flow of $77m, up from $4.8m in 2014.

One of the world's biggest high-frequency trading firms, IFSC-based Susquehanna Ireland Limited has posted pre-tax profits of $32m (€29m) for 2015, a massive jump on its 2014 pre-tax profits of $9.5m (€8.6m).

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Susquehanna Ireland is a subsidiary of Susquehanna International Group, a global trading and investment firm headquartered in Philadelphia.

Using a combination of fast computers, high-speed data networks, and complex algorithms, Susquehanna trades securities.

Its Irish operation is sitting on a $46m (€42m) cash pile after paying a dividend of $71m in 2015. No dividend was paid out in 2014.

Susquehanna Ireland had a net cash flow of $77m, up from $4.8m in 2014.

Its parent company Susquehanna International Group employs 1,500 staff around the world.

Ireland is fast becoming a European hub for high-frequency trading firms who bag millions on the stock market in the blink of an eye.

As well as Susquehanna, Dublin is home to two other well-known high-frequency trading firms, Virtu Financial - who moved to Dublin in 2013 with IDA support - and Geneva Ireland Financial Trading who posted an after-tax profit of €882,257 for 2015 on trading income of €20.5m and a gross profit of €7.9m. Geneva Trading bosses are sitting on a cash pile of €3.8m.

High-frequency trading has its critics who claim it causes flash crashes and brings volatility to the share market.

Its defenders say it brings liquidity to the market and has led to a massive reduction in the cost of trading.

Sunday Indo Business

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